Tivity Health Prices New Senior Secured Credit Facilities in Significantly Oversubscribed Transaction, Increasing Financial Flexibility

Nashville, TN/PRNewswire—Tivity Health, Inc. (Nasdaq: TVTY) (the “Company”), a leading provider of healthy life-changing solutions, including SilverSneakers®, today announced the pricing of a $400 million senior secured term loan B facility (the “term facility”) and a $100 million senior secured revolving facility (the “revolving facility”, and together with the term facility, the “credit facilities”).

The loans under the term facility will be issued at 99.5% of their face value and bear interest at a rate equal to LIBOR plus 4.25%, with a zero percent LIBOR floor. Loans under the revolving facility will bear interest at a rate equal to LIBOR plus 3.75% to 4.25% based on the Company’s total net leverage ratio from time to time. The Company intends to use the proceeds of the credit facilities to repay all outstanding amounts under its existing credit agreement and for general corporate purposes.

“The syndication of the new term facility was significantly oversubscribed, and as a result, achieved more favorable terms than the initial price talk,” said Adam Holland, Chief Financial Officer. “Our new credit facilities will provide us with a solid financial foundation to grow the business with enhanced flexibility and extended tenor. The reduction in margin spread is expected to result in cash interest savings of over $3 million during the first 12 months, and the lower amortization is expected to reduce our annual required principal payments by $56 million, positioning us well to execute on our new strategic direction and fund growth initiatives.”

The closing of the proposed term facilities is expected to occur by early July 2021 and is subject to customary closing conditions. The commitments in respect of the credit facilities and the terms and conditions thereof remain subject to the finalization and execution of definitive documentation.

Morgan Stanley, Credit Suisse and Truist Bank are acting as joint lead arrangers and bookrunners for the transaction.